P a y m e n t &mbsp; S y s t e m s  

Mostly used so far:

Credit cards

• Advantage "Everybody" has one.
• Security of them relies on
  • code on the magnetic stripe of the card, which is checked by ATMs, for instance. However, it cannot be checked over the internet.
  • signature (which is difficult to check over the internet)
  • credit card number and PIN number.
• Therefore credit card companies charge higher for internet transactions.

Micropayment Systems

like "PayPal". Originally designed for C2C transactions. Charges the purchaser's credit or debit card, or subtracts from a initial check the purchaser sent once. There is no fee, paypal just takes the interest.

TradEnable

Especially suited for online auctions, where the buyer does not trust the seller (like he/she would trust some companies). The Buyer wires money (by credit card, check, money order, wire transfer) to tradEnable, then the Seller ships the goods, then the Buyer checks the quality, and only after he/she gives the OK, the money is sent to the Seller.

e-Charge Phone

Purchases are billed on the phone

Smart Cards

like "Mondex". Uses a "smart card" with chip. This chip contains a "purse" with virtual money in it.

Electronic Cash

like "InternetCash" or "CyberCash". Uses virtual (electronic) currency. You need a client software on your computer to run this. 

Erich Prisner, June 2005